The crypto market has changed direction since DeFi came to the forefront of the market. The entire rave now is about DeFi and we don’t think that will change anytime soon. DeFi is now seen as the fulfillment of the initial aim of blockchain technology, and that is to change how people perceive and carry out financial transactions.
So many tools and protocols are aiding this change in direction of the crypto market. Some of these revolutionary tools include DEXs and we will be looking at three recently introduced DEXs based on Swap Protocol and go through their main features.
Anyswap is a Swap-based DEX built upon the Fusion DCRM technology to allow cross-chain coin swaps to take place. The decentralized protocol also features liquidity as well as an automated pricing system. On the platform, users can swap coins of blockchain that utilize EdDSA or ECDSA as its signature algorithm. For example, coins like ETH, XRP, BTC, LTC, and many more.
The main highlights of the Anyswap protocol are Cross-Chain Swaps, Decentralized Cross-Chain Bridge, and Automated pricing and liquidity system. The Cross-Chain Swaps gives users the option to swap coins instantly.
The next feature is the Decentralized Cross-Chain Bridge, which means that users can deposit into the protocol using any type of coin to get tokens. The last major highlight is the Automated pricing and liquidity system, which allows the liquidity supplier to withdraw and add liquidity into the swap pair. Then the automated pricing is determined by the supplied liquidity.
Further features include low fees that are 100000 times lower, high rewards, as well as the addition of more swap pairs.
Presently, the exchange supports both Ledger wallets and Metamask with more hardware wallets planned. There is a governance token called ANY based on the Fusion Chain, which users could use to elect Anyswap Working Nodes (AWN), decide on the addition of supported chains, or for a change in governance rules.
The functions of the ANY token allow for a full decentralization of the Anyswap protocol. This means those at Anyswap have no control at all over your deposits. Anyswap started with the ANY/FSN pair on their exchange and since then they have gradually added more coins such as USDT, ETH, UNI, etc.
The central idea around Burgerswap is governance and the community (users). Burgerswap also stresses the importance of a “democratized decentralized exchange”. In other words, the users’ participation in the governance of the protocol is compulsory.
Burgerswap deviates itself from the usual setting of the DeFi space, where real governance is found missing. Most protocols rely mostly on coders to modify the contracts. However, that is not the case with Burgerswap, it is designed to be a people’s exchange and they determine its parameters directly.
The users get to say what the exchange’s parameters will be such as mining speed, trading fees, etc. To make sure users participate in voting, they are only eligible for staking rewards when they do.
Burgerswap is based on the Binance Smart Chain which means every token on the exchange will get BNB pairing. In addition to that, every asset will get a Burger pair too.
Bakeryswap is all about making yield farming easier and cheaper for users. The exorbitant fee of ETH gas prices is proving to be a real challenge for new and upcoming DeFi projects. So, to beat around this obstacle of high ETH gas price, DeFi protocols like Bakeryswap are launching on the Binance Smart Chain. This allows the protocol to offer cheaper fees as well as a faster transaction.
Bakeryswap does not involve any pre-mine or pre-sale activity, prioritizing instead the fair distribution of every BAKE token. The team members of the project only get 1% of all the tokens with maximum rewards available for stakeholders of the project. Bakeryswap also poses as the first exchange based on Binance Smart Chain to provide alt-coin liquidity pools.
The key features include:
- Reward for liquidity providers through BAKE token, which allows them to get a percentage of the exchange trading fees.
- The token can also function as a tool for voting on matters of governance of the protocol.
- Bakeryswap offers two types of liquidity pools, the first one is with BAKE rewards and the second is without the BAKE rewards. The essence of this is to ease the formation of new liquidity pools by the users.
Comparing Anyswap, Burgerswap, and Bakeryswap
After going through the highlights and features of all the three DeFi protocols, we now make a comparison based on certain parameters. These parameters include:
DeFi Suitability: A look into how each protocol matches up to the needs of the DeFi market as well as which protocol is most suitable to fulfill these needs.
Level of Security: In terms of security, we will compare how each protocol matches up and which offers the best security.
Transaction Fees and Rewards: We compare the DEXs transaction fees and rewards and check which one offers the best fees and rewards.
Future Projections: We look at the current trends around the three DEXs then compare them to examine the protocol with the best chance of success and adoption in the future.
The DeFi economy is currently dominated by Ethereum-based DeFi protocols. However, the recent surge in ETH gas prices has been a serious concern for new and upcoming protocols. This is causing a lot of these new DeFi projects to explore new exciting options.
Anyswap is built upon the Fusion chain using the Fusion DCRM technology. The use of this technology allows the interoperability of the exchange. That means users are not limited to ETH swap alone, unlike DeFi protocols that are based on Ethereum. Users are often concerned about how to swap their other assets like BTC, XRP, etc.
With Anyswap, this is made possible as users can now transact across various blockchains. This allows Anyswap to fulfill several needs of users in the DeFi market. Burgerswap also chooses to neglect the Ethereum chain, instead electing to go with the Binance Smart Chain.
The Binance Smart Chain offers an Ethereum Virtual Machine-compatible environment that makes it easier to migrate to its chain without hassle. The large crypto ecosystem that Binance has to offer makes it very suitable for DeFi protocols. It allows DeFi protocols to bring decentralized finance to a larger audience hoping to take part in DeFi projects.
Bakeryswap toes the line of Burgerswap by also electing to set up its protocol on the Binance Smart Chain. The exchange also aims to bring the DeFi experience of the large community of Binance users. The DEX also offers altcoin liquidity pools. The model offered by Bakeryswap is very much similar to Burgerswap. Additionally, both exchanges also benefit from the cross-chain ability of the Binance Smart Chain.
Of the three protocols, Anyswap interoperability looks more exciting in terms of fulfilling the needs and craving of DeFi users. The ability of the users to swap coins across several blockchains means there is little to no limit on the trading of coin on the exchange. However, it should be noted the exchange is gradually adding and listing new coins.
Transaction Fees and Rewards
For Anyswap apart from the interoperability, the use of the Fusion chain brings down the transaction fee. The exchange claims to offer transaction fees that are about 10000 times cheaper than what you will get in the traditional crypto market.
The transaction fees stand at 0.4% of each swap transaction. The high ETH gas price is one of the reasons users find it difficult to trade in the DeFi market. DEXs like Anyswap aim to change that by offering reasonably lower fees and faster transactions.
In terms of rewards, we have liquidity rewards of up to 15 million ANY utilized to stimulate the providers of liquidity to offer stronger liquidity. There is also another 10 million ANY Cross Chain DCRM Node rewards used for motivating Anyswap working nodes to ensure stable and secure cross-chain service. Additional rewards include team rewards, shareholders rewards, and swap, and trading rewards.
Burgerswap also offers very cheap transaction fees by banking on the cheaper Binance Smart Chain. Transaction fees are set at a modest 0.3% on the first day with all transaction fees converted to Burger and added to the governance pool. Users are rewarded for taking part in the voting process of the newly created proposal contract.
The exchange also offers rewards to miners to achieve a fair distribution of rewards to both miners and token holders. Incentives offered to users can be slowed or boosted during the voting process.
Bakeryswap also charges 0.3% transaction fees on every trade or swap that takes place on its exchange. The transaction fee is distributed between Liquidity Providers (LPs) and BAKE holders. BAKE holders get 0.05% as extra rewards in the form of BAKE token and LPs get 0.25% in the form of liquidity pool tokens also called Bakery LPs. Liquidity Providers can farm rewards in the form of BAKE token by staking their Bakery LPs.
Level of Security
In the case of Burgerswap, there is a voting process that is in place to keep out scam projects. Before any project can be listed or delist from the exchange, it undergoes community voting. The vote takes place within a day or could be extended up to a maximum of 7 days through voting.
Also, Burgerswap does not have a Liquidity pool token and that eliminates the risk of liquidity being transferred to another protocol.
Bakeryswap just like Burgerswap is built on top of the Binance Smart Chain. This gives it access to the enhanced security that the Binance Smart Chain has to offer. Recently, Binance Smart Chain partnered with PeckShield, one of the leading DeFi security companies in the market to enhance the security of the chain network.
Anyswap prides itself on being a completely decentralized exchange. That means it is unlikely to be vulnerable to cyber-attacks that centralized exchanges frequently face. Centralized exchanges are known to have a single point of weakness as they store data and funds on a centralized point. Therefore, they are just one successful cyber-attack away from catastrophic failure or loss.
In the case of Anyswap, the exchange has no control over the digital assets of users. Therefore, a security breach is unlikely to affect a large number of users like in the case of centralized exchanges. Anyswap also makes use of cold wallets, which makes it hard for hackers to have access to your digital assets because they are kept offline.
The three DeFi exchanges offer so much promise. However, the question is can they all deliver on their promises. We have seen many DeFi projects hit the rock, the most recent example is the Yam.finance project.
For Bakeryswap, things have started to look worrying already. With the project taking a sudden plunge in value causing losses for retail investors. There are also concerns raised online about the suitability of the Binance Smart Chain for DeFi projects.
According to the Burgerswap medium blog, the project is still very much in the growth stage and that is understandable since it is a new project. There are still hiccups here and there. However, there has been a steady update from the development team concerning the project which bodes well for the project’s future.
The team announced the intention to apply for Binance Smart Chain DeFi and CeFi accelerator fund worth $100M. If such a fund is secured it could secure the future of the project.
After Anyswap launched its project, there has been a steady progress update from the team concerning the development of the project. Information from Coingecko shows that the ANY token has been a bit stable in terms of price and volume traded. The price has increased by 7.9% in the last 24 hours. The indication is that the project is on a good path. However, like all DeFi projects at the moment, the trading risk remains high.
Although all the three DeFi protocols are recently introduced, the first notable point is that of the three protocols, only Anyswap is not a fork of Uniswap. This means Anyswap offers something quite different from the other two.
The potential of the fusion chain also makes the Anyswap an exciting project to partake in. Nevertheless, Binance Smart Chain is also forging ahead with the improvement of its blockchain. This is to ensure it can cater to the needs of the DeFi industry adequately.